Superior Group of Companies (SGC) Small-Cap Virtual Conference summary

Company Overview and Segment Highlights

• Operates three diversified segments: healthcare apparel, branded products, and contact centers, each with strong customer retention and ample organic growth opportunities.

• Healthcare apparel segment serves institutional and consumer markets, offering brands like Wink, Carhartt, and Fashion Seal through omnichannel distribution, holding a single-digit market share in a $4.4B US market.

• Branded products segment is a top ten US distributor, serving major brands such as Amazon, Tesla, Walmart, and Coca-Cola, with over 5 million Americans wearing these brands daily and a $26 billion industry TAM.

• Contact centers (The Office Gurus) deliver nearshore, high-touch services for small to medium-sized businesses, recognized for quality and rapid growth, operating in a $121B US market.

• Maintains a solid balance sheet, uninterrupted dividends since 1977, and significant insider ownership aligning management with shareholders.

Financial Performance and Capital Allocation

• Consolidated revenues reached $566 million in 2024, with an 8% CAGR since 2019 and 11% annualized growth since 2014.

• 2025 sales guidance is $550–$575 million, with growth across all segments driven by organic expansion and acquisitions.

• Segment EBITDA for 2024: Branded Products $36.3M, Healthcare Apparel $8.7M, Contact Centers $12.2M.

• Share repurchase program initiated in August 2024, with $15 million in stock bought and leverage ratios improved to 1.7x EBITDA.

• Capital allocation priorities include dividends, share repurchases, organic growth investments, and strategic acquisitions.

Strategic Initiatives and Operational Updates

• AI is deeply integrated into the contact center business, driving efficiency, reducing headcount, and creating new business opportunities as an AI implementation partner.

• Cost-savings plan announced in May targets $13 million in annualized expense reductions, with half expected in 2025 and full benefit by 2026.

• Sales teams are set to expand and upskill across all business segments in 2026 to drive aggressive market growth.

• Strong focus on sustainability, diversity, and community engagement, including recycling initiatives and charitable contributions.

• Dividend yield remains high (4–5%) and is considered a core, safe priority.